|

Surprise! Three-fourths of recent reduction in the federal debt has been in spending cuts!

Don’t tell your Republican friends about THIS; it’ll only confuse them:

When it comes to most of the major political disputes in Washington, congressional Republicans insist Democrats focus on reducing the debt Republicans built up during the Bush/Cheney era. It underpins everything from the budget fight to the debt ceiling to efforts to expand public investments.

What the debate tends to ignore is the debt reduction that’s already happened. Michael Linden and Michael Ettlinger  reportedyesterday that since the start of 2011 fiscal year, President Barack Obama “has signed into law approximately $2.4 trillion of deficit reduction” over the next decade…

Roughly three-quarters of the deficit reduction has come is in the form of spending cuts, which should further make Republicans happy. And while the $2.4 trillion in savings will be spread out over the next 10 years, it’s also worth noting that the deficit has shrunkby $300 billion in Obama’s first term, and we’re in the midst of the fastest deficit reduction since the end of World War II.

(Snip)

The conventional wisdom suggests nothing is being done to address a perceived debt “crisis,” and that somehow Republicans have the high ground in demanding more and more cuts. It seems spectacularly insane to me to think the GOP has credibility on the subject given that it was Republicans who created the budget shortfall in the first place, but establishment assumptions are hard to shake.

(Snip)

Just as an aside, let’s also take a moment to compare administrations. Obama, in just the last two years, has accepted $2.4 trillion in debt reduction through multiple proposals. How many debt-reduction proposals did Republicans approve during the Bush/Cheney era? None. Even when there was a Republican-led House, Republican-led Senate, and Republican-led White House? Yep, even then.

Share:

11 Comments

  1. Neftali

    It doesn’t seem to be working.

    “The federal government ran up a $293 billion deficit in the first quarter of fiscal 2013, which ended Dec. 31, the nonpartisan Congressional Budget Office estimated Tuesday. The government’s fiscal year starts on Oct. 1st.

    At this pace, the deficit would be on pace to top $1 trillion for the fifth-straight year in 2013. All the trillion-dollar deficits have taken place under President Obama.”

    http://www.reclaimamericapac.com/blog/first-quarter-deficit-was-293-billion-cbo-says/

  2. Neftali

    “The mountain roared and gave birth to a mouse … we’re the healthiest horse in the glue factory right now.” – Al Simpson

    This short video is worth your time.

    http://youtu.be/AAob-zkl0rc

  3. Craig Knauss

    Nef,

    Find a reliable site to quote. (Something that’s not right trash.) The last sentence you pasted is BS: “All the trillion-dollar deficits have taken place under President Obama.””

    GWB’s last budget ended in Sept 2009 and the deficit was $1.4 T.

    http://www.whitehouse.gov/omb/budget/Historicals

  4. Big Dave

    Craig, can you show me where the President has the right to spend money without the approval of Congress? And can you tell me which party controlled Congress in 2009?

    The answer to these questions will help you a lot.

  5. Big Dave

    Something I forgot Craig, why has the government NOT passed a budget in 4 years? This continuing resolution stuff is dangerous for us all.

  6. Craig Knauss

    Read this real slowly Dave, the budget I mentioned ended in Sept 2009. Got it? It was submitted by the Bush White House and approved in 2008. That budget already authorized the expenditure of funds. Got it? The White House writes the budget. The Senate approves the budget. The House makes the appropriations. The incoming president always takes office under his predecessor’s last budget. This keeps the government operating on Inauguration Day.

    Does this help you?

  7. None of it matters.

    The federal credit cards are maxed out and we need to start paying them down.

    Continuing to add to the credit card balance at a slightly slower rate ain’t gonna cut it.

  8. “Feb. 1, 2010
    President Obama announced a $3.83 trilion budget today that he hopes will fight unemployment while freezing spending on some government programs. It’s a huge price tag, and it’s worsening an enormous, record-setting budget deficit — $1.6 trillion.

    Many people are now asking how we got here. Especially when it was not long ago that we had a surplus. Here’s a breakdown of the recent history:

    In 2000, when President Clinton left office, the U.S. was in the black by $236 billion. At the time, number crunchers projected a surplus for at least 10 years.

    But just two years later, we were in the red by $158 billion. The aftermath of 9/11 effectively froze the nation’s economy. And President Bush enacted his first round of tax cuts.

    By 2004, the deficit had more than doubled, to nearly $413 billion. The U.S. had invaded Iraq, and, economists point out, there was another round of tax cuts.

    By the end of 2008, the banking system was near collapse. Bush signed a $700 billion bank bailout package, and the deficit grew to $438 billion.

    Then Obama took office and soon enacted the $787 billion economic recovery plan. That brings us to $1.4 trillion in debt…and still counting”
    http://abcnews.go.com/WN/obama-budget-history-federal-budget-deficit/story?id=9721492

  9. “Bush Leaving Next President Record Federal Budget Deficit”

    The deficit will hit $482 billion in the 2009 budget year that will be inherited by Democrat Barack Obama or Republican John McCain, the White House estimated Monday.
    “The nation’s economy has continued to expand and remains fundamentally resilient,” said the budget office report.

    A $482 billion deficit would easily surpass the record deficit of $413 billion set in 2004. The White House in February had forecast that next year’s deficit would be $407 billion.

    The deficit numbers for 2008 and 2009 represent about 3 percent of the size of the economy, which is the measure seen as most relevant by economists. By that measure, the 2008 and 2009 deficits would be smaller than the deficits of the 1980s and early 1990s that led Congress and earlier administrations to cobble together politically painful deficit-reduction packages.

    http://www.huffingtonpost.com/2008/07/28/bush-leaving-next-preside_n_115335.html

  10. Big Dave

    Craig, again please show me where the Constitution gives the President the right to spend money. That should be simple for you, right!

    Then please remember the democrats took over the Congress in January 2007 not 2008 or 2009.

    The White House submits a proposed budget and the Senate must approve it, something that has not been done for 4 years. GOT IT!

    “The House makes the appropriations.” So explain why the Senate has never voted on a budget in “again” 4 years.

    I hope this helps you understand how bad this government is being run!

  11. Big Dave

    http://www.huffingtonpost.com/2008/07/28/bush-leaving-next-preside_n_115335.html

    One more thing Craig.

    “The deficit will hit $482 billion in the 2009 budget year that will be inherited by Democrat Barack Obama or Republican John McCain, the White House estimated Monday.” (straight from the article)

    So is 1.6 Trillion (Obama) the same as 482 Billion (Bush)? Answer NO!

Leave a Reply

Your email address will not be published. Required fields are marked *

CAPTCHA Image

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>